Financial Performance of Maple-Birch Stands in Wisconsin: Value Growth Rate Versus Equivalent Annual Income

The value growth rate and equivalent annual income per acre were computed for the maple-birch plots measured at the last two Wisconsin forest inventories. The computations reflected stand growth as well as real price changes between the two inventories. The equivalent annual income averaged $13/ac/yr on industrial forests, and $8.50/ac/yr on public and other private lands. Stand value growth rates, in percent per year, suggested much higher returns, but they are misleading because many of the stands that grew fast were understocked and gave low returns per acre. At the other extreme, some of the best stocked stands (highest basal area) also were poor financial performers. A regression equation showed that the stands of highest equivalent annual income were on better sites, had a basal area of about 80 ft²/ac, a large number of smaller poles ready to become sawtimber, large proportions of oak, elm, ash, and cherry trees, and few aspen or softwoods. No single variable had a major effect by itself, but within the range of the data, by changing all of them together, the annual income on land of average site index could double. North. J. Appl. For. 14(2):59-66.